When the price of a good falls,the ratio of the marginal utility of that good divided by its price _______ and,as a result,consumers purchase _______of that good.

Question

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When the price of a good falls, the denominator in the ratio of marginal utility to price decreases, causing the ratio to rise. As a result, consumers purchase more of that good to maximize their utility.

When the Price of a Good Falls,the Ratio of the Marginal